Gold prices fell on Friday but were headed for their third consecutive quarterly rise, as investors looked ahead to key US inflation data due later that could shed some light on the U.S. stance. Federal Reserve regarding interest rate cuts.
BASICS
* Spot gold was down 0.3% at $2,321.39 an ounce, as of 0157 GMT. Prices have risen nearly 4% in the quarter. Bullion was flat on both the week and the month.
* U.S. gold futures fell 0.2 percent to $2,332.10.
* The dollar rose 0.2%, making gold more expensive for holders of other currencies, while benchmark 10-year yields also rose during the day.
* The personal consumption expenditure (PCE) price index report due at 1230 GMT is on investors’ radar for further clues on the timing and scale of potential rate cuts this year.
* The weakening economic momentum was underscored by data showing business spending on equipment fell in May, while slumping exports widened the goods trade deficit.
* In its third estimate of gross domestic product for the January-March quarter, the government confirmed that economic growth moderated sharply in the first quarter.
* U.S. Federal Reserve Governor Michelle Bowman reiterated on Thursday that she is not yet ready to support a rate cut by the central bank as inflationary pressures remain elevated.
* Higher interest rates increase the opportunity cost of holding non-yielding bullion.
* Spot silver fell 0.5% to $28.91 an ounce, platinum rose 0.7% to $994.42 and palladium gained 1.5% to $943.22.
DATA/EVENTS (GMT) 0600 UK GDP QQ, YY Q1 0645 France CPI (EU Norm) Preliminary YY, MM June 0645 France CPI Preliminary MM NSA June 0645 France Output Prices YY May 0755 Germany Unemployment Chg, SA Rate June 1230 US Consumption, Adjusted MM May 1230 US Core PCE Price Index MM, YY May 1230 US PCE Price Index MM, YY May 1400 US Sentiment U Mich Final June (Reporting by Sherin Elizabeth Varghese in Bengaluru)
